Costing

31. First step in developing an operating budget is to

identify product
identify problem
identify quartiles
identify percentiles

Detailed SolutionFirst step in developing an operating budget is to

32. If the amount of work certified is less than . . . . . . . . of the contract price, then no profit should be taken to Profit & Loss Account.

20%
25%
$$33 rac{1}{3}% $$
40%

Detailed SolutionIf the amount of work certified is less than . . . . . . . . of the contract price, then no profit should be taken to Profit & Loss Account.

33. Type of relationship stating “how changes in cost driver drives cause changes in cost” will be termed as

marginal plausibility
economic plausibility
financial plausibility
market plausibility

Detailed SolutionType of relationship stating “how changes in cost driver drives cause changes in cost” will be termed as

34. The control ratios used by the management to know whether the deviations of the actual performance from the budgeted performance are favourable or unfavourable are . . . . . . . .

Capacity ratio, activity ratio
Efficiency ratio, calendar ratio
Both A and B
None of the above

Detailed SolutionThe control ratios used by the management to know whether the deviations of the actual performance from the budgeted performance are favourable or unfavourable are . . . . . . . .

35. Significant feature of Kaizen Budgeting is

employee suggestion
customer suggestion
cost suggestion
price suggestion

Detailed SolutionSignificant feature of Kaizen Budgeting is

36. Under Merrick’s multiple piece rate system, 110% of the ordinary piece rate is given to workers whose level of performance is between . . . . . . . . of the standard output.

83% and 100%
100% and 120%
0% and 83%
None of these

Detailed SolutionUnder Merrick’s multiple piece rate system, 110% of the ordinary piece rate is given to workers whose level of performance is between . . . . . . . . of the standard output.

37. In transportation costing a composite unit such as . . . . . . . . is used.

passenger mile/km or Ten kilometer
per km
per passenger
per stop

Detailed SolutionIn transportation costing a composite unit such as . . . . . . . . is used.

38. Goodness of fit predicted values is also known as

coefficient of determination
coefficient of index
coefficient of residual
coefficient of prediction

Detailed SolutionGoodness of fit predicted values is also known as

39. Which of the following is not a method of cost absorption?

Percentage of direct material cost
Machine hour rate
Labour hour rate
Repeated distribution method

Detailed SolutionWhich of the following is not a method of cost absorption?

40. Indicate the correct option as regards the sources of funds for a funds flow statement from the following 1. Increase in working capital. 2. Decrease in working capital. 3. Writing-off the intangible/fictitious assets. 4. Issuing equity shares for acquisition of a building for office. 5. Charging depreciation on fixed assets. Select the correct answer

1, 3 and 4
2, 3 and 5
1, 4 and 5
2, 3 and 4

Detailed SolutionIndicate the correct option as regards the sources of funds for a funds flow statement from the following 1. Increase in working capital. 2. Decrease in working capital. 3. Writing-off the intangible/fictitious assets. 4. Issuing equity shares for acquisition of a building for office. 5. Charging depreciation on fixed assets. Select the correct answer

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